Indonesia to raise tobacco excise by 10.04 per cent on average in 2018

Indonesia will raise excise rates on tobacco products next year by an average of 10.04 per cent.
Indonesia will raise excise rates on tobacco products next year by an average of 10.04 per cent.PHOTO: REUTERS

JAKARTA (REUTERS) - Indonesia will raise excise rates on tobacco products next year by an average of 10.04 per cent, a slightly smaller increase compared with this year, coordinating minister of economics Darmin Nasution said on Thursday (Oct 19).

This year, the government has taxed all kinds of tobacco products in a range that started as low as 22 rupiah per single cigarette for the traditional "rokok klembak", to as high as 110,000 per stick for cigars.

Those taxes represented a 10.5 per cent average increase from 2016.

The government aims to raise 155.4 trillion rupiah of revenue from excise taxes in 2018, most of it coming from tobacco products. A small chunk is predicted to come from a newly imposed excise tax on plastic bags.